Tata Consultancy Services Ltd. (TCS) - The Smart Investor

Offshore players enjoy cost
advantage of upto 40%
TCS plans to triple its revenue
from consulting space in next
3 years
OFFSHORE PLAYERS VERSUS MNCs
With the increase in size of offshore players, they are capable to take the IT assets
of the clients on their balance sheets. Further extension of development centers
by offshore players has enabled them to move up to the leadership position (TCS,
Infosys, Wipro and HCL are included in the list) in infrastructure management
space (Source: Forrester).
As per CRIS INFAC, by providing services from offshore location there is direct
saving of cost by 30% to 40% to clients, which can be increased with maturity
of the relationship. This provides offshore players cost competitiveness against
global service providers.
TCS V/S OTHER OFFSHORE PLAYERS
Among the top four Indian IT companies, Wipro has highest total score in
infrastructure management space (on the back of very high score in strategy and
market presence), followed by TCS -having highest score in current offering
because of its successful adoption of the global delivery model among all the
offshore players. Considering its strengths in infrastructure outsourcing space,
TCS is expected to maintain its lead going forward.
(Source: Forrester)
*For more details refer Annexure 3
iii) Consulting: -
IT consulting involves formulation and execution of IT strategy on behalf of
corporates. Since it involves participation with the clients from the stage of
formulation of IT strategy and interaction with the top-level management of client
organization, it provides IT consulting company a chance to obtain contracts for
other IT related work such as implementation and maintenance. Hence, most
players are increasingly trying to expand their presence in IT consulting.
Traditionally Indian players did not have a large presence in IT consulting. For
instance, share in IT services export of consulting was just 1%, however over
a period of time tier I companies have built their expertise and increased their
presence in IT consulting.
TCS, at present employs around 800 consultants. Besides these 800 consultants,
consulting work is also done by same number of people from outside the consulting
department. TCS plans to increase the number of consultants to 2,500 in next
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